Yahoo ready to sell search biz to Microsoft

Deal will give Yahoo new board members to replace Yang

Finally, after months of fruitless wrangling and name-calling, it seems we have an end to the Microsoft/Yahoo affair, as the former looks like taking over the latter's search business.

According to the Sunday Times, Microsoft will buy Yahoo's search-related division for around $20 billion (£13 billion) to help it keep up with Google.

Seats on the board

What's definitely not happening, however, is Microsoft taking over the entire company – that deal is definitely now dead in the water.

The new plan will see Microsoft install its own management team to take over Yahoo CEO Jerry Yang's role. That will come through an injection of $10 billion (£6.6 billion) that will accord three seats on the Yahoo board.

While all of this remains to be finalised, it seems clear that Yahoo will be left to find its way through other services such as email and instant messaging.

Update: Reuters is saying this morning that the Sunday Times report is "total fiction". Confusion surrounding a Microsoft/Yahoo story? What a surprise.